By Steve Hadfield, AgedCareActionPlan.au · Last reviewed: 11 June 2026
Last updated: 11 June 2026
When a funding letter arrives, most families do what feels sensible — search for providers, read reviews, compare services. That is understandable. It is also the wrong starting point.
The more important question is not which provider to choose. It is: what are they legally required to do, and what can they not do to you, regardless of which one you pick?
Under the Aged Care Rules 2025, every registered Support at Home provider is bound by the same statutory obligations. No exit fees. No lock-in. Care management fees capped at 10% of your quarterly budget. The right to 90 days before you must sign anything. The right to switch at any time. These are not negotiable — they apply regardless of what a service agreement says.
Most families sign a service agreement without knowing any of this. This guide changes that.
Before looking at any individual provider, understand what all of them must do. These are not voluntary standards or best practice guides — they are legal requirements under the Aged Care Rules 2025, enforceable by the Aged Care Quality and Safety Commission.
What every provider must do — by law
These obligations are not aspirational. If a provider presents a service agreement that contradicts any of them — an exit fee clause, a minimum period, or a care management fee above the cap — the clause is unlawful. You do not have to accept it.
The service agreement is the legal document that governs everything — what they deliver, what you pay, and what your rights are if something goes wrong. Most families sign it the same day they receive it. You are not required to. You have up to 90 days to review it, and your services continue in the meantime.
Before signing, work through these five questions. Each is tied to a specific legal right.
1. What is the care management fee — and is it below 10% of my quarterly budget?
Find the fee section. The care management fee must be expressed as a percentage of your quarterly budget, and that percentage must be 10% or below. If it is expressed as a flat dollar amount without reference to your budget, ask the provider to express it as a percentage so you can verify compliance.
2. Is there an exit fee or minimum service period?
Find the termination or exit clause. There should be no exit fee, no administration charge for leaving, and no minimum service period. If any appear, do not sign until they are removed. These clauses are unlawful — a legitimate provider will remove them without dispute.
3. Does the service schedule specify what I will actually receive — and when?
Find the service schedule. Each service should be named specifically, with approximate frequency. A schedule that says 'services as agreed from time to time' is not adequate. Ask for it to be updated before you sign. Vague schedules make it harder to identify when a provider is not delivering what was agreed.
4. What is the process if I want to make a complaint?
The agreement should include a complaints process. If it does not, ask the provider to add one. You also have the right to complain directly to the Aged Care Quality and Safety Commission at any time — this right exists regardless of what the agreement says.
5. What happens to my unspent funds if I switch providers?
Unspent quarterly funds follow the funding, not the provider. Ask the provider to confirm in writing how unspent balances are handled at the point of transition. Your services budget is yours — it does not belong to the provider.
If a provider is reluctant to answer these questions clearly, that reluctance is itself information. A provider operating within the rules has no reason to be evasive about them.
Care management fees are charged as a percentage of your quarterly budget before any services are delivered. The legal cap is 10%. For most families, the significance of that cap only becomes clear when you see the dollar amounts.
The table below shows the quarterly budget for each classification and the maximum care management fee a provider can legally charge. These figures are indexed annually on 1 July — check Support at Home funding explained for updated figures after each indexation.
| Classification | Quarterly budget | Max care mgmt fee (10%) |
|---|---|---|
| Classification 1 | $2,682.75 | $268.28 |
| Classification 2 | $4,008.61 | $400.86 |
| Classification 3 | $5,491.43 | $549.14 |
| Classification 4 | $7,424.10 | $742.41 |
| Classification 5 | $9,924.35 | $992.44 |
| Classification 6 | $12,028.58 | $1,202.86 |
| Classification 7 | $14,537.04 | $1,453.70 |
| Classification 8 | $19,526.59 | $1,952.66 |
Worked example — Classification 3
Quarterly budget: $5,491.43. Legal care management cap: $549.14. A provider charging 15% care management — which some do — would be taking $823.71 per quarter, or $274.57 more than the legal maximum. Over a full year, that is $1,098.28 in excess fees on a Classification 3 budget alone.
Care management fees are not the only fees providers charge — there may also be service-specific fees and participant contributions depending on income. But the care management cap is the most commonly exceeded, and the most directly checkable. Your monthly statement should show the fee as a line item.
Check your fees automatically
Navigator checks what most families never think to check — the care management percentage against the legal cap, every quarter, automatically.
Start Navigator — $29/month →Switching providers is a statutory right. Not a procedure to be negotiated — a right. There are no exit fees, no minimum notice periods you owe, and no financial penalty for leaving. If a provider implies otherwise, they are wrong.
The practical steps for switching are handled through My Aged Care (1800 200 422). Your funding allocation moves with you — it does not stay with the outgoing provider. Your new provider will set up a new service agreement, and the same 90-day signing window applies.
For a full walkthrough of the switching process — including what to say to the outgoing provider and how to avoid a gap in services — see How to switch your Support at Home provider.
Switching providers is not an accusation. Most families who consider switching feel awkward about it — as though leaving reflects badly on the provider. It does not. You are entitled to receive care from a provider that suits you. The system was designed to make switching straightforward for exactly this reason.
Everything you need to manage your funding
Phone scripts, agreement checklists, fee calculators, and step-by-step guides — built for families who want to stay on top of the system without becoming experts in it.
Get the Complete System — $97 →If your provider is not delivering what was agreed, is charging incorrectly, or is behaving in a way that concerns you, there is a clear escalation path. Do not wait to see if it resolves itself — problems with providers tend to compound.
Raise it in writing with your provider
Start with a written complaint to your provider — email is sufficient. State the specific issue, the date it occurred, and what you want done. Written records matter if the issue escalates. Most providers resolve complaints at this stage.
Contact OPAN for free independent advocacy
If the provider does not resolve it, contact the Older Persons Advocacy Network on 1800 700 600. OPAN provides free, confidential advocacy and can help you navigate the complaints process. They are independent — they work for you, not the provider.
Lodge a complaint with the ACQSC
The Aged Care Quality and Safety Commission handles complaints about registered providers. Contact them at agedcarequality.gov.au or on 1800 951 822. You can complain whether or not you have raised the issue directly with the provider first.
For more detail on what triggers a formal complaint and how to document it effectively, see What to do if your provider isn't delivering services.
Key contacts
My Aged Care
Provider transitions, funding questions
OPAN (free advocacy)
Independent support before and during complaints
ACQSC (complaints)
Formal complaints about registered providers
No. Exit fees are prohibited under the Aged Care Rules 2025. No provider can charge you for leaving, regardless of what their service agreement says. If you see an exit fee clause in an agreement presented to you, do not sign until it is removed.
A care management fee is what your provider charges to coordinate your care — reviewing your care plan, organising services, and checking in with you. Under the Aged Care Rules 2025, this fee cannot exceed 10% of your quarterly classification budget. For Classification 3, that means a maximum of $549.14 per quarter (figures indexed annually on 1 July).
You have up to 90 days to sign your service agreement. Your services continue throughout this period — your provider cannot stop services simply because you have not yet signed. Take the time to read it carefully and ask questions.
Yes. Switching is a statutory right under the Aged Care Rules 2025. There are no exit fees and no minimum service periods. Contact My Aged Care on 1800 200 422 for support with the transition process.
Your provider must give you 14 days written notice before ceasing services — even within the 90-day service agreement window. If you receive a cessation notice without this, contact OPAN on 1800 700 600 immediately for free independent advocacy.
Stay protected every quarter
Know exactly what your provider is charging — and whether it's within the legal cap.
Navigator checks what most families never think to check — the care management percentage against the legal cap, every quarter, automatically.
Start Navigator — $29/month →This guide is for information only — not legal, medical, or financial advice. Verified against the Aged Care Act 2024 and Aged Care Rules 2025. Check myagedcare.gov.au for current rates and rules.